Alarm.com Raises 2026 Subscription and License Revenue Outlook by $12.2 Million
Key Facts
On November 5, Alarm.com raised its 2026 outlook for software-as-a-service and license revenue to a range of $756.1–$756.3 million, an increase of $12.2 million from the midpoint of the guidance it gave in February, according to a company filing with the U.S. Securities and Exchange Commission. The update coincided with the release of results for the quarter ended September 30, when total revenue rose 9.0% to $279.4 million from $256.4 million a year earlier. Software-as-a-service and license revenue totaled $191.2 million, up 9.0% from $175.4 million in the same quarter of 2025. Results showed adjusted net income attributable to common stockholders rose to $48.3 million, or $0.90 per diluted share, from $39.5 million and $0.71 per share. By contrast, GAAP net income fell to $34.3 million from $35.1 million, putting the improvement in adjusted metrics alongside a decline in accounting net income.
The company reported GAAP net income attributable to common stockholders of $34.4 million, or $0.66 per diluted share, compared with $35.3 million and $0.65 per share in the third quarter of 2025. Adjusted EBITDA was $66.2 million, versus $55.5 million in the same period. Adjusted net income attributable to common stockholders rose to $48.3 million from $39.5 million, while diluted earnings per share increased to $0.90 from $0.71. The company presents these non-GAAP measures alongside GAAP results and says they are not a substitute for them. In the first quarter of 2026, it revised the definition of certain adjusted metrics to exclude gains and losses on specified investments with readily determinable fair values, and recast prior comparisons under the new definition.
The updated outlook also covered total annual revenue, which the company expects to range from $1.1011 billion to $1.1113 billion in 2026, including hardware and other revenue of $345.0 million to $355.0 million. It also raised its adjusted EBITDA outlook to $227.0–$229.0 million. The company estimated adjusted net income attributable to common stockholders at $161.2 million to $162.6 million, based on an estimated tax rate of 21.0%. The outlook sets separate ranges for subscription and license revenue, total revenue, hardware and other revenue, and adjusted profitability. The $12.2 million increase applies to the midpoint of the software-as-a-service and license revenue outlook compared with February's forecast.
For the fourth quarter of 2026, Alarm.com forecast software-as-a-service and license revenue of $194.6 million to $194.8 million. That follows third-quarter revenue of $191.2 million, according to the company's results, while it said the business grew 9.0% year over year in that quarter. The business includes revenue the company generates from software-as-a-service and licenses, the category for which it issued separate guidance for the coming quarter and the full year. The fourth-quarter outlook compares with a full-year range of $756.1–$756.3 million, according to the results statement. The guidance did not provide a fourth-quarter total revenue figure among the facts included in the statement.
Alarm.com announced its acquisition of CellGate, a provider of cellular gate access control and video intercom systems. The company said the deal expands its presence through an established channel in the fence and gate market and adds recurring revenue activity. The acquisition broadens the company's range of offerings related to residential and commercial security, according to its description of the deal in the results statement. The CellGate announcement appeared alongside the quarterly results and annual outlook. The company did not provide the deal value or financial terms in the available information.